18yo, and about to go to college and have around 15k saved in saving plus and additional 2kish in spending.
I start college this fall and have my first 2 years payed for by my parents and my next 2 are undecided.
I am planning on working in college but I don’t have anything set.
What do I do with the 15k I have and where do I invest it in?
-Like what platform, what stocks, RothIRA, ect.
Thanks
Posted by Suprise_1-3
2 Comments
You need a game plan to pay for your entire degree.
Federal student loans have annual and aggregate limits. As a dependent student you can borrow between $5.5k and $7.5k per school year. Federal student loans are use it or loose it. You may need to max out borrowing in years 1&2 to help pay for years 3&4.
If you don’t need money for school and you have earned income… set up a Roth IRA with Vanguard/ Fidelity. Invest in VTI.
First, keep some of that money as an emergency fund, college has unexpected expenses. If you earned income from a job, open a Roth IRA with Fidelity or Vanguard and max it out ($6,500/year). Invest in a low-cost index fund like VTI. Whatever’s left, keep liquid in a high-yield savings account. you might need it for years 3-4 if your parents don’t cover those. Don’t rush to invest everything when your near-term expenses aren’t fully planned.